U.S. ED Leaders Report Germany as Top Source Of International Prospects

In Avalanche Consulting’s latest biannual survey in July, 104 economic developers indicate that 17 percent of economic development prospects come from foreign countries, the same share reported in 2011. The top three sources of international prospects are Germany, China and Canada.

Asian countries comprise a greater share of these prospects than two years ago. This reflects a slight drop in prospects from France and Spain, likely due to the uncertain economic situation in Europe, and a slight rise in prospects from Japan, Korea, and other Pacific Rim countries. The top two sources of international prospects, Germany and China, saw their share of prospect activity stay the same.

Prospects are companies that are considering an expansion/relocation and are competitively evaluating multiple cities as part of their decision. Economic development organizations often assist these companies with their information needs, site and building search, workforce assessments, and/or financing and incentives.

International prospect activity varies based on population size of the community seeking investment. Larger communities reported a larger share of foreign prospects, as illustrated in the table below.

Community Size

Micro

(less than 100,000 residents)

Small

(100,000 up to 249,999 residents),

Medium

(250,000 up to 999,999 residents)

Large

(1 million+ residents)

% Foreign Prospects

12%

15%

23%

31%

Top Sources

Germany, China, Canada

Germany, China, Japan

Germany, United Kingdom, Canada

Germany, Canada, China

The Economic Development Activity Index is a biannual survey of U.S. economic developers to gauge changes in prospect activity, job announcements, and perceptions of the economy. While other surveys exist to measure sentiment of businesses or consumers, this survey is focused on economic development leaders, who have unique insights on the future of job creation in U.S. communities. The most recent survey was conducted July 15 – August 1, 2013.